Saudi Arabia Pharmaceutical Drugs Market to Witness Significant Growth Rate owing to Increasing Healthcare Expenditure
The Saudi Arabia pharmaceutical drugs market consists of prescription as well as over-the-counter medicines used for the treatment of various diseases. Some of the commonly used pharmaceutical drugs in the country include antibiotics, antidepressants, antidiabetics, analgesics, and cardiovascular drugs. There is a high demand for pharmaceutical drugs in Saudi Arabia due to the growing incidence of chronic and infectious diseases. Moreover, the availability of universal healthcare and increasing healthcare expenditure by the government are supporting the growth of the pharmaceutical drugs market in the country.The Saudi Arabia Pharmaceutical drugs market is estimated to be valued at US$ 12.60 billion in 2023 and is expected to exhibit a CAGR of 7.6% during the forecast period (2023-2030).
Key Takeaways
Key players operating in the Saudi Arabia pharmaceutical drugs are copyright Inc., Sanofi S. A., Daewoong Pharmaceutical Co., GlaxoSmithKline Plc., AstraZeneca Plc, Baxter International Inc., Astellas Pharma, Life Care Group of Pharmacies, Tadawi Pharmacies, Planet Pharmacies (Zahrat Al Rawdah), Al-Safwwa Pharmacy, Al Nahdi Medical, Saudi Pharmaceutical Industries & Medical Appliances Corporation (SPIMACO), Tabuk Pharmaceuticals, Hikma Pharmaceuticals PLC, Jamjoom Pharmaceuticals Co., Julphar, Biocon Limited, and BeiGene.
The key opportunities in the Saudi Arabia pharmaceutical drugs market include the rising geriatric population, increasing prevalence of lifestyle diseases, growing demand for biopharmaceuticals, and adoption of e-health technologies. The aging population is more prone to chronic medical conditions, thus driving the demand for pharmaceutical drugs.
Owing to initiatives like Vision 2030, the Saudi government is encouraging Saudi as well as foreign pharmaceutical companies to invest in the healthcare infrastructure and drug manufacturing facilities in the country. This is expected to boost the local production of drugs and foster innovation, thereby supporting the overall growth of the pharmaceutical industry.
Market Drivers
The increasing of Saudi Arabia Pharmaceutical Drugs Market Size and Trends is one of the major drivers of the pharmaceutical drugs market. In recent years, healthcare spending as a percentage of GDP has risen significantly. Between 2010 to 2020, healthcare expenditure increased from 2.8% to 4.7% of GDP. This rise in budget allocation has enhanced the accessibility of drugs for various diseases.
PEST Analysis
Political: The political environment plays a crucial role as the Saudi government aims to reform its healthcare system and promote local production of drugs to reduce dependence on imports. Various initiatives are being taken to boost the sector.
Economic: The strong economic growth in the past few years, coupled with increased healthcare spending by both public and private players, is fueling the growth of the pharmaceutical market. Additionally, the young demographics provide opportunities.
Social: Non-communicable diseases are rising rapidly due to changing lifestyles. This is increasing the demand for drugs to treat chronic conditions like diabetes and cancer. Moreover, greater health awareness encourages people to adopt preventive care and medication.
Technological: Manufacturers are investing in R&D to develop innovative drugs. digitization is helping enhance supply chain and distribution management. E-commerce is gaining traction in pharmaceutical product sales and online platforms provide new opportunities.
In terms of value, the pharmaceutical market in Saudi Arabia is concentrated in major cities like Riyadh, Jeddah and Dammam. These urban centers account for around 65-70% of the total market size due to their large population bases and presence of leading hospitals and healthcare facilities. Among regions, the Western province (which includes major cities like Jeddah) is currently the largest market for pharmaceuticals in the Kingdom.
The fastest growing region for the Saudi pharmaceutical market is expected to be the Central province over the forecast period. Major factors contributing to its high growth rate are the rapid urbanization in cities like Qassim and Buraydah, increasing healthcare infrastructural investments, growing incidence of diseases and improving access to insurance coverage and services.
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Alice Mutum is a seasoned senior content editor at Coherent Market Insights, leveraging extensive expertise gained from her previous role as a content writer. With seven years in content development, Alice masterfully employs SEO best practices and cutting-edge digital marketing strategies to craft high-ranking, impactful content. As an editor, she meticulously ensures flawless grammar and punctuation, precise data accuracy, and perfect alignment with audience needs in every research report. Alice’s dedication to excellence and her strategic approach to content make her an invaluable asset in the world of market insights. (LinkedIn: www.linkedin.com/in/alice-mutum-3b247b137 )